Fees
Costs are important to everyone and you should ask your
solicitor at the first meeting how much you are likely to have to
pay in total for his or her services. Most solicitors will try to
give you the best estimate they can and will tell you how the bills
are worked out. You can ask your solicitor to confirm the estimate
in writing.
A reasonable fee will take account of:
- the amount of work and the time involved (including how
complicated, difficult or novel the matter is)
- the level of specialised knowledge, responsibility and
supervision needed
- the length, number and importance of any documents which need
to be prepared or read
- the place and circumstances in which the work is done
- the urgency of the case
- the amount of money or value of any property involved
The Law Society does not set guidelines for fees. Each firm
charges what it believes is appropriate.
Some solicitors charge a fixed fee for the whole job, others
charge according to how much time they actually spend doing the
work for you (this includes time spent with you, so remember that
you will be adding to the final bill each time you contact your
solicitor).
Remember that a solicitor will not always be able to tell you
exactly how much the work is going to cost. However, if the final
bill varies from the estimate, he or she should give you an
explanation. Once the solicitor has started work on your case, if
it looks as if the work will cost more than the estimate, the
solicitor will contact you in advance to let you know so that you
can decide what you want to do.
If you are concerned about the costs, you should agree a fixed
spending limit with your solicitor at your first meeting. If that
limit is reached, the solicitor will then contact you before doing
any more work on your behalf.
It is also worth considering whether or not to ask your
solicitor to send you bills on a regular basis (for instance,
monthly). This might help you to budget if you are concerned about
receiving a large bill once the work has been done. Also, it is not
uncommon for solicitors to ask clients to pay some money in advance
or before the work is complete to cover their costs. Sometimes your
solicitor will have to pay other expenses (outlays), eg for medical
reports, court fees or registration fees. So, when budgeting,
remember that you will also be responsible for these costs.
In some situations, you may have to pay the other side's legal
bills as well as your own. Your solicitor should advise whether or
not this is likely and, if so, how much the charges are likely to
be.
Court cases
If you raise a successful court action and the opponent is
ordered to pay your expenses, you may still have to pay some fees
to your solicitor. This is because court (or judicial) expenses are
calculated on a different rate from the fees charged by solicitors
to their clients. Your solicitor may ask you to pay the difference,
although you may agree with your solicitor at the outset that he or
she will accept the fees that can be recovered (see no win no fee
cases below).
Legal aid
If you are getting legal aid and you are awarded compensation by
the court or are due money because your case is settled, your
solicitor must send the settlement cheque to the Scottish Legal Aid
Board (SLAB). SLAB will then deducts what your solicitor is owed
before sending the balance back to your solicitor for you.
No win no fee cases
Solicitors in Scotland may also act on a speculative basis -
charging no fee unless the matter is successful. This is often
referred to as acting on a no win no fee basis. This is mainly
relevant to court actions although it is also done regularly in
house sales (no sale no fee).
If you pursue a no win no fee case and you are unsuccessful, you
will usually be liable for your opponent's legal expenses, and your
own solicitor's outlays, but not their fees. To protect against
this risk you may take out insurance before commencing a no win no
fee case.
Querying the fee
If you wish to challenge the amount that you have been charged,
you should discuss the matter with your solicitor or the
firm's client relations partner.
You may wish to ask how the fee has been calculated. Your
solicitor should give you a summary of the work done for you and
how the charges are worked out, free of charge.
You can ask for a detailed breakdown of the invoice which
describes each letter, the time spent by each person who worked on
your file and each phone call but the solicitor is entitled to
charge for preparing this.
Auditor of court
If you remain unhappy with the amount charged, you can have the
solicitor's account independently scrutinised. This is called the
'taxation' of the account and is carried out by the auditor of
court.
The auditor will examine all the relevant paperwork and decide
what the correct costs should be. The auditor does not look at
whether the service provided was adequate. Part of signing up to
use an auditor means accepting that his decision is binding. If you
wish to use the services of an auditor then you should ask your
solicitor to make the necessary arrangements.
If you wish, you can attend a hearing before the auditor to put
forward your views. You should tell your solicitor when you request
an audit that you would like to have a hearing and they will
include this information with the papers sent to the auditor. The
auditor will advise you of the date and time of the hearing.
The cost of using an auditor is usually 3% or 4% of the final
amount. If the auditor finds that your solicitor's invoice was
excessive, your bill from the solicitor will be reduced and the
solicitor will have to pay the auditors' costs; if the auditor
finds that your solicitor's invoice was reasonable then you are
likely to be asked to pay his or her fee as well as the original
solicitor's bill.
More details can be found at the Scottish Court
Service.
If you feel the service provided was inadequate then you should
discuss it with the solicitor or the firm's client relations
partner. If the matter is still unresolved then you may contact the
Scottish Legal Complaints Commission
on 0131 528 5111.